What Business Owners Should Know About Self Insurance Options

Insurance needs tend to vary from one company to the next. Though it is true that there are a few foundational staples of appropriate coverage, you typically want to cater your policy to the specifics of your business. The demands placed on a startup are going to be very different than those experienced by an international corporation. The best way to find correct coverage is by looking at what is available to you. For some, the option of self-insurance coverage can be the perfect fit.

What Is the Self-Insurance Option?

As the name suggests, self insurance is an option that allows a business owner a bit of flexibility in terms of coverage. Instead of using a third-party provider to cover costs of policy options like workers’ compensation, you are given the option of assuming the costs and responsibilities yourself. Many business owners opt for this policy structure because it allows them a bit more control when it comes to the way the coverage works. Advantages of this option can include:

  • Flexibility with rates and premiums
  • Policies customized for your industry
  • Enhanced control over claims

Find Appropriate Coverage

The first step toward successfully insuring your business is learning about all of the policy options available to you. Consider insuring yourself and see what you stand to gain by pursuing this alternative route.

Common Reasons Your Lender May Choose To Force-Place Insurance Coverage

Has your lender recently informed you that they’re planning on imposing force placed insurance on one or more of your insurance plans? If so, you may be interested to learn what the purpose of this insurance might be. Take a look at some of the most common reasons lenders may choose to place this specific coverage type.

The Force-Placed Insurance May Be Necessary To Mitigate Common Lending Risks

In situations of high risk to the lender, some lenders may decide to force-place insurance to help guarantee that a minimum amount of coverage is in place. A few of the top reasons lenders have to force-place insurance include mitigating the risks of, or compensating for:

  • Policy cancellation or expiration
  • Policy lapses and gaps
  • Coverage withdrawal by the insurer
  • Natural or structural risks to the insured property
  • Missed homeowner payments

Your Lender May Choose To Offer Replacement Coverage

If you’ve had insurance force-placed, ask your lender whether the policy includes replacement coverage. Depending on the specific policy, the lender may receive:

  • Coverage in the event of property destruction
  • Insurance for whatever amount is owed to the lender
  • Protections for losses due to natural disasters

When it comes to force-placed insurance, understanding your lender’s motivation may help you determine what you need to do to maintain the appropriate insurance coverage. You can review these quick facts to gain some insight.

The Benefits of Getting Brewery Liquor Liability Coverage

Have you ever wondered what your brewery liabilities are regarding the sale, consumption and aftereffects of liquor? If you run a brewery, having liquor liability coverage may prove essential in the event of an accident or a lawsuit. Take a look at some of the benefits this coverage could provide your business.

Your Brewery Could Enjoy Additional Coverage Beyond General Liability Policy Standards

Although your brewery might already have a general liability insurance policy in place, liquor liability provides additional coverage that could prove immensely useful. For instance, a liquor-specific policy could protect your business from:

  • Damage resulting from intoxicated individuals in your establishment
  • Alcohol mistakenly given to underage patrons
  • Violations of local laws and regulations regarding liquor sales
  • Legal issues involving liquor licenses

Numerous Types of Liquor-Related Claims May Be Included in Your Coverage

Typical liquor liability coverage offers protections against several specific types of claims. These protections could include, but are not limited to:

  • Liquor liability lawsuit defense costs
  • Assault and battery coverage
  • Mental injury coverage in cases of suits involving claims of stress, psychological problems and other types of mental issues
  • Occurrence coverage for injuries

In order to protect your business from several common brewery liabilities, it’s important to have thorough liquor liability coverage in place. Review these potential benefits to help you decide whether your brewery could use this additional coverage.

Understanding Tail Coverage

When you buy insurance, you’re buying financial protection for a set term. As a result, it’s not usually possible to make a claim for damages after the term is over, even if the damages occurred during the policy’s lifetime. Renewing a policy often changes that, but if you switch providers or retire from business, you’re likely to need tail coverage for many types of insurance.

Post-Policy Protection for Malpractice Claims

Any time you’re closing a policy and there’s a chance a claim could arise after the policy is over based on an event that happened while it was in force, that’s a cause for tail coverage. Tail insurance is literally an extended reporting window on the terms of the old coverage, either provided by a tail coverage specialist or by the original insurance carrier. Tail coverage and malpractice claims are most important for doctors and lawyers, but any professional carrying professional liability coverage should consider it.

If you’re changing practices or partners at your existing practice, you’re also likely to need tail coverage. Often, an entire practice is covered under one policy, and if the makeup of that practice changes, the policy needs to change. That means you’ll need tail coverage, whether you get it as part of your new policy or as a separate instrument.

Understanding the Ins and Outs of Planned Unit Development Coverages

Investing in multifamily properties can be a great way to see a decent profit on your future. Planned units are a popular option these days and finding the perfect luxury community to invest in can help you reach new levels with your endeavors as an entrepreneur. Of course, this journey is not without many obstacles. With this type of arrangement, the units are owned by both the renters and the individual who owns the community. The property managers, however, are responsible for taking out a comprehensive insurance package that covers the residents and their needs.

Who Insures What?

An interesting point to understand about planned unit development coverages is that some costs are covered by the residents themselves. Typically, these packages will take care of individual insurance needs and coverage for the unit. As the property manager, you’ll need to focus more on the paperwork and other administrative errors that can occur. E&O insurance helps to protect you when important info is omitted from an official document. This type of protection will also protect the business owner from any allegations of negligence. Additional points to keep in mind when exploring your insurance options include:

Protect Your Investments

While purchasing real estate can be an amazing way to take advantage of exciting financial opportunities for your future, you need to make sure you are taking the time to go about the process in the right way. Look over your options and discover comprehensive protection.

Knowing How to Cover Gaps in Your Insurance Coverage

Purchasing an insurance policy may bring you peace of mind, but your liability policy may leave expensive gaps or exclusions. There are coverage limits as well, and resolving an incident could exceed what your insurance policy provides. When this happens, an excess liability or umbrella policy could help make up the difference.

Knowing the Difference

Though the terms are sometimes used interchangeably, there are noted differences between excess insurance vs umbrella coverage. With umbrella policies, the insured is given higher liability limits as well as a broad scope of coverage for the policy itself. Umbrella coverage can usually fill in gaps like coverage territory, such as moving from a national scope to a worldwide application. With an excess liability policy, the insured is provided additional coverage beyond the financial limits established by the underlying policy. However, because the financial limits are extended, the policy may be more restrictive when written.

Paying Attention

Either policy you choose, you need to carefully read through to find out inclusions and exclusions. The policies themselves don’t follow a standard format, making it easier for you to overlook a crucial detail or simply assume a situation is covered.

The distinction between the two policies can become blurred, especially when agents are talking to you about the benefits of carrying additional coverage. With this information, you should have a better understanding of what policy will best cover your liabilities.